An increase in revenues increases net income, and net income increases stockholders’ equity. True or false?.

LIFO uses the ______ unit costs for Cost of Goods Sold on the income statement and the ______ unit costs for Inventory on the ba

Tasya [4]

LIFO uses the last unit costs for Cost of Goods Sold on the income statement and the first unit costs for Inventory on the balance sheet.

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

For example, if beginning inventory consists of 10 units at $10 per unit. In the middle of the month, 10 units were bought at $15 per unit. At the end of the month, 10 units were sold. Using LIFO, the cost of goods sold would be $150 ( 10 x 15). Ending inventory would be $100 ($10 x 10).

To learn more about LIFO, please check: brainly.com/question/13779572

3 0

2 years ago

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items

OLEGan [10]

a. The average aggregate inventory value is $336,000.

b. The number of weeks of supply that the firm has is 3 weeks, approximately (2.69 ($336,000/$6,500,000 x 52).

c. The inventory turnover of Sapphire Aerospace for last year was 19.3x.

Question Completion:

Category Part Number Average Value Total Category

Inventory Units per Unit Value Totals

Raw Materials RM-1 20,000 $1 $20,000

Materials RM-2 5,000 5 25,000

RM-3 3,000 6 18,000

RM-4 1,000 8 8,000 $71,000

Work-in-process WIP-1 6,000 10 60,000

WIP-2 8,000 12 96,000 $156,000

Finished goods FG-1 1,000 65 65,000

FG-2 500 88 44,000 $109,000

Total value of inventory $336,000 $336,000

Inventory turnover = Cost of goods sold/Average inventory

= 19.3x ($6,500,000/$336,000)

Thus, the average inventory value is $336,000, while the inventory turnover was 19.3x.

Learn more about inventory turnover here: brainly.com/question/5701250

3 0

2 years ago

Peak performance sporting goods company has reported net income after taxes = $3,750,000, with 18,250,000 shares outstanding. ba

LiRa [457]

The basic earning per a share can be calculated by dividing the net income after taxes by the number of shares outstanding. Thus we have that the basic earning per share is 3,750,000/18,250,000 = .20547 dollars per share. The basic earning per share for peak performance is .205 dollars per share.

7 0

2 years ago

Discuss how you react to changes in the environment. For example, there is a change in your class schedule or a change in the pr

Colt1911 [192]

Answer: my reaction would probably not be good

Explanation:

8 0

2 years ago

The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.

Mama L [17]

Answer:

Please see answers below

Explanation:

1. Prepare an income statement for the year ended, December 31, 2021

Fightin' Blue Hems Corporation, Income statement for the year ended, December 31, 2021.

Details

$

Service revenue

500,000

Salaries expense

400,000)

Rent expense

20,000)

Depreciation expense

40,000)

Interest expense

5,000)

Earnings for the year

35,000

2. Prepare a statement of stockholder's equity for the year ended, 31, December, 2021

Fightin' Blue Hens Corporation statement of stockholder equity for the year ended , December 31, 2021.

Details

$

Common stock

300,000

Retained earnings

60,000

Earnings for the year

35,000

Stockholder equity

395,000

3. Prepare a classified balance sheet as at 31, December

Fightin' Blue Hens Corporation, classified balance sheet for the hear ends, December 31, 2021.

Details

$

Fixed assets

Equipment

400,000

Accumulated depreciation

135,000

Net fixed assets

265,000

Current assets

Cash

12,000

Accounts receivables

150,000

Prepaid rent

6,000

Supplies

30,000

Total current assets

198,000

Current liabilities

Accounts payable

($12,000)

Salaries payable

(11,000)

Interest payable

(5,000)

Working capital

170,000

Long term liabilities

Notes payable (due in two years)

(40,000)

Net total assets

395,000

Financed by;

Common stock

300,000

Retained earnings

60,000

Earnings for the year

35,000

Stockholder equity

395,000

4 0

3 years ago